Question

John needs to decide about whether to spend $10,000 on a two year degree that will qualify him for a $35,000 a year job or go to work now and make $20,000 a year. How long will it take Anthony to recover his investment if he goes to school? Assume he will not work at all while in college. Round to 1 decimal place.

John needs to decide about whether to spend $10,000 on a two year degree that will qualify him for a $35,000 a year job or go to work now and make $20,000 a year. How long will it take Anthony to recover his investment if he goes to school? Assume he will not work at all while in college. Round to 1 decimal place.

Answer 1

Explanation:

To calculate how long it will take John to recover his investment, we need to divide the cost of the degree by the difference in income between the two options.

$10,000 / ($35,000 - $20,000) = $10,000 / $15,000 = 0.67 years or 0.67*12 = 8 months.

So, it will take John 8 months to recover his investment if he goes to school.

Please note that this is a simplified calculation as it does not take into account the cost of living, taxes, and other expenses.